In general, it's better to have a low inventory turnover ratio than a high one, as a low ratio indicates that the firm has an adequate stock of inventory relative to sales and thus will not lose sales as a result of running out of stock. If it is false give reason in two sentences.

Q: Identify the incorrect statement below; Group of answer choices “Too much inventory can lead to…

A: Current assets are those assets which are to be utilised for the purpose of business in day to day…

Q: Current Attempt in Progress If a company overstates its closing inventory, it will O understate…

A: When closing inventory is overstated, this reduces the amount of inventory that would otherwise have…

Q: The net realizable value of Lake Corporation’s inventory has declined below its cost. Allyn Conan,…

A:

Q: A company records inventory at gross invoice price. Theoretically, how should the following affect…

A: Solution: Interest on inventory loan do not affect cost of inventory, it is working capital loan…

Q: Identify the correct statement from the following if, cost of inventory is greater than its net…

A: Net realizable value seems to be an essential indicator being used in accounting reporting for…

Q: An increasing balance in the Inventory account accompanied by an increase in the inventory turnover…

A: Increase in inventory can be because of  lesser sale or can be because of more anticipated sales in…

Q: Which of the following statement about the inventory write-down is not correct? * If the cost is…

A: As per International Accounting Standards IAS 2- “ Inventory includes assets that are held for the…

Q: Which of the following statements are true? Multiple Cholce none of the statements are true The…

A: The 2 statement is not true, as higher the number of days sales in receivable indicates that the…

Q: During times of inflation, which of these inventory accounting methods is best for cash flow? JUST…

A: given information   need to find the incorrect statement in the below-given options given in the…

Q: Which of the following is not a disadvantage of the LIFO inventory cost flow assumption? a. The…

A: LIFO is the Last in first out method of inventory which says that inventory purchased last should be…

Q: The net realizable value of Lake Corporation’s inventory has declined below its cost. Allyn Conan,…

A: a. The ethical issue involved in the situation is, use of cost-of-goods-sold method to write down…

Q: In calculating inventory turnover, why is cost of goods sold used as the numerator? As the inventory…

A: Inventory turnover ratio:Inventory turnover ratio is used to determine the number of times inventory…

Q: Application of the lower-of-cost-or-market rule results in inconsistency because a company may value…

A: Lower of Cost or market rule states that while estimating value of the company's Inventory it is…

Q: An increasing inventory turnover ratio indicates that: a.a company has reduced the time it takes to…

A: The inventory turnover ratio indicates the efficiency of a business to purchase and selling its…

Q: When a company's days of inventory on hand are increasing, this might indicate that: O The company…

A: Days of inventory on hand means days required the company to change its inventory in cash or in…

Q: Do you agree with the following statements? Express your opinion on each statement.

A: 1: This statement is correct  This can be explained with the help of example: Suppose closing stock…

Q: Do you agree with the following statements? Express your opinion on each statement. An inventory…

A: 1) This statement is correct  This can be explain with the help of example: Suppose closing stock is…

Q: The margin of safety is the amount that sales can drop before the company incurs a loss True False

A: Margin of safety = Actual sales - Break-even sales

Q: During a period of falling prices, which of the following inventory methods generally results in the…

A: There are 3 types of methods for inventory valuation: a.FIFO b. LIFO c. Weighted average FIFO: In…

Q: Explain the purpose of the inventory turnover ratio? Is it possible for a firm to have a high…

A: In finance we make use of various financial ratios to determine the financial health of a company.…

Q: Which statements below are true? 1. LCM and LCNRV may be applied by individual products, by…

A:

Q: During times of deflation , LIFO will provide the highest closing inventory figure and the highest…

A: A drop in the overall price level of products and services is referred to as deflation. When the…

Q: How can accounting keep up with the rising sales return rates, especially when it comes to inventory…

A: Management of inventories: Inventory management may be characterized as a system for measuring and…

Q: Analysts must recognize that the use of the specific identification method to value inventory has a…

A: The amount, by which the Inventory Level exceeds the Closing Inventory level is referred to as the…

Q: An increase in the inventory turnover rate is indicative of: Multiple Choice a decrease in the cost…

A: Inventory turnover rate is calculated as ratio of cost of goods sold and inventory

Q: Inventory Turnover Ratio shows the speed at which the inventory will be converted into sales. Select…

A: Introduction: Inventory turnover ratio is one of the financial ratios which is computed by any…

Q: Which of the following is false? Select one: a. Days’ sales in inventory is equal to the average…

A: Option “B” is False.

Q: Sigma Corporation experiences a decrease in sales and cost of goods sold, an increase in accounts…

A: Accounting's goals include keeping a systematic record of all financial transactions in a book of…

Q: How should accounting be able to catch up with the high sales return rates, particularly on…

A: Inventory management: Inventory management can be defined as a system to measure and record the…

Q: View Policies Current Attempt in Progress Very high turnovers O are always the goal of management.…

A: Turnover ratios are the efficiency ratios which helps in determining the effect of balance sheet…

Q: a. Why is a high inventory turnover considered to be a positive indicator?b. Is it possible to have…

A: a.Inventory turnover shows the company’s ability to sell its inventory, it is shown in terms of…

Q: If the book inventory is larger than the physical inventory, the difference is known as Reduction…

A: A reduction occurs when a thing is made smaller or less in size or amount. An overage occurs when…

Q: Retailers need merchandise to make sales. In fact, a retailer’s inventory is its biggest asset. Not…

A: Stock turnover rate is the rate which a business computes in order to determine and know about how…

Q: When a company determines that the net realizable value of its ending inventory is lower than its…

A: Lower of cost and net realizable value: The lower of cost and net realizable value is a method which…

Q: Which of the following is false? Select one: a. Day's sales in inventory is equal to the average…

A: The correct option is part (b), that is higher day’s sales in inventory means that inventory is less…

Q: Which of the following regarding the lower of cost ormarket rule for inventory are true?(i) The…

A: Option c is correct.

Q: a. Income manipulation is difficult under LIFO. b. Accounting principles do not require that the…

A: The right answer is option b. Accounting principles do not require that the inventory cost flow…